Scott Pritchard: Precinct Properties chief executive confirms move into residential property through proposed Auckland CBD project

Precinct Properties plans to funnel over $300 million into housing in Auckland CBD.

The company has announced it'll build student accommodation of 500 units on Queen Street, to boost housing in the city centre.

CEO Scott Pritchard says moving toward residential property is a natural next step.

"For a long time now, we've been developing commercial office - and in the last few years, we've sort of moved into mixed-use development where you add retail and other uses to offices."

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Episode Transcript

Speaker 1 (00:00):
Ever do for Sea Elen, one of New Zealand's largest
property developers, has just announced two massive new projects in Auckland.
Precinct Properties is buying a property on Queen Street to
build student accommodation. Also bought another property on Dominion Road
to build apartments Jashi Mark's a big move away from
commercial property towards residential property for the company. Scott Pritchett
is the Precincts Property CEO.

Speaker 2 (00:21):
Hey Scott, Hi, Heather, how are you?

Speaker 1 (00:23):
I'm very well, thank you. Why have you decided to
move into the residential stuff?

Speaker 2 (00:27):
Well, look, I mean for a long time now we've
been developing commercial office and then in the last few
years we've sort of moved into mixed use development where
you add retail and other uses to office, and it
sort of seems to us to be a really natural
extension of our business activities to now move into residential.

Speaker 1 (00:43):
Are you a little bit worried about where things are
at on the commercial property front?

Speaker 2 (00:47):
Look, I think for the most part, a lot of
the valuation impacts have already been felt. You know, commercial
properties down sort of ten to twelve percent over the
last two years, and interest rates and moderating, so we
expect from here that outlook to remain more consistent and
more constant than it has been for the last few years.

Speaker 1 (01:04):
Why student accommodation, Well.

Speaker 2 (01:07):
I mean student accommodation is actually an international students in
particular our big economy in Auckland, we're still not back
to the levels that we were pre pandemic, and pre
pandemic that was a five billion dollar industry. One of
the biggest issues that we're seeing is that there's not
enough beds for international students to come to Auckland and
not enough regional or domestic students to come here either.

(01:28):
So you know, we're basically meeting that demand and want
to provide new supply so that you know, more students
can come here.

Speaker 1 (01:35):
Do you weaken apartments are catching on in this country?

Speaker 2 (01:39):
Well, I think they have to. You know, when we
have immigration levels at the level that we do, and
you know, we have a planning a regime which is
very permissive, which actually allows more density in and around
the city. I think we're going to see more and
more apartment living and it makes it more attainable, and
that's what we think is what's desperately needed.

Speaker 1 (02:00):
Does your apartment, your apartment block, come with car parks
or no?

Speaker 2 (02:03):
Oh, absolutely, Heather, you still think they're important. Look, we
do think they're important in any location. Frankly, I mean,
public transport is good and it's getting better, but you know, Q,
we still love to drive your car.

Speaker 1 (02:15):
Hey, how are you going with the plans for the
apartments at the Downtown car Park site?

Speaker 2 (02:20):
Look, they're they're still in design. We're incredibly excited about
that opportunity. I mean, bringing that quality and that scale
of development into the city center. I mean, one of
the things that we think is lacking in the city
center is people that live there. We've only got about
forty thousand, and we should have more like eighty two
one hundred thousand in our city center. So we're going
to try and do our part. And we're really excited

(02:41):
about that opportunity because I've Scotlsten.

Speaker 1 (02:43):
I mean, so you've got the stuff going on at
the Downtown car Park, You've also got the stuff going
on at Queen Street. Are you Are you at all
worried about the level of crime and whether it's going
to make those desirable locations or do you reckon It'll
be sorted by the time you've actually got people living
in these buildings.

Speaker 2 (02:56):
Well, we're worried about it. We need more police on
our streets in the city center. There's just there's no
doubt about that. And I think we've seen a real
absence of police and there's a consequence. You've seeing chrime
showed up to you know, really really, you know, material
and quite concerning levels. So we need more police on
the streets in the city center. And do you have hope, Well,
I'm hopeful that they're listening because there's a lot of

(03:18):
people talking about it and and quite rightly show because
the level of crime is at levels that have never
been seen before, so we need a response.

Speaker 1 (03:26):
Scott is good to talk to you, mate, and best
of luck with it that Scott Pritchard precing Property CEO.

Speaker 2 (03:31):
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